This study focuses on three different approaches to the role of finance and the financial sector in economy-wide relations and in specific conditions of economic crises. First, we investigate the Minskyan framework in dealing with the roots and the reasons of financial crises. Second, we look at...

The current financial crisis of 2008 has caused to the emergence of different analyses in the context of the reasons of crisis both in mainstream economics and heterodox economics. This study focuses on various arguments in heterodox economics and tries to analyze them as a whole. It is...

In this second part of our study we survey the rapidly expanding empirical literature on the determinants of the functional distribution of income. Three major strands emerge: technological change, international trade, and financialization. All contribute to the fluctuations of the labor share,...

This series of working papers explores a theme enjoying a tremendous resurgence: the functional distribution of income - the division of aggregate income by factor share. This first installment surveys some landmark theories of income distribution. Some provide a technology-based account of the...

Economic theory frequently assumes constant factor shares and often treats the topic as secondary. We will show that this is a mistake by deriving the first high-frequency measure of the US labor share for the whole economy. We find that the labor share has held remarkably steady indeed, but...

We study the effect of the upsurge of natural resources income from the commodity price boom of the 2000s on the functional distribution of income. To do so, we build a general equilibrium model of Dutch disease that characterizes how natural resource windfalls affect equilibrium factor shares....

The labor share in Japan has been declining significantly over the last three decades, accompanied by persistent stagnation and an unprecedented increase in economic inequalities. Since these dynamics are likely to be interrelated, understanding the drivers of the labor share might contribute...

Purpose: The aim of this study is to examine the effects of the 2008 financial crisis on the labor share in Turkey, by conducting a comparative analysis of various labor share measures using both micro survey and aggregate data. Design/Methodology/Approach: By adopting aggregate data- based...

This paper revisits the discussion of the determinants of the declining labour share in industrialised countries. We select a panel of 20 OECD countries with the most advanced industrial capabilities and explore the effects of technological progress on the labour income share. We incorporate a...